To Problems With China’s Financial System, Add the Bond Market
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A brokerage house in Shanghai in November. China’s stock market crashed last year, and its $9 trillion bond market is showing signs of distress. CreditAly Song/Reuters
SHANGHAI — Chinese officials cheered on the country’s stock market when it reached heady new highs, offering hope that it could become a new source of money to fix China’s economic problems. Then, last year, the market crashed.
Now another fast-growing part of China’s vast and increasingly complicated financial market is showing signs of distress: its $9 trillion bond market.
Prices for government and corporate bonds have tumbled over the past week, a sell-off that continued on Tuesday. The situation has spooked investors, prompting the government to temporarily restrain some trading and to make emergency loans to struggling financial institutions…
To Problems With China’s Financial System, Add the Bond Market
